Boost staff financial wellbeing with salary-deducted savings and loans

A salary deduction scheme allows your employees to save or make loan repayments directly from their salary. Each month, a fixed amount is deducted from pay and transferred securely to their credit union account. This makes saving simple, builds financial resilience, and gives staff affordable access to credit when they need it.

There is no cost to your organisation. The scheme is free to set up and operate. The only commitment required is to run a simple payroll deduction each month, similar to other employee benefits.

No. Employees apply directly to London Mutual Credit Union for savings or loans. Your payroll department simply processes the deductions as instructed each month.

We work with employers of all sizes, from large NHS Trusts and local authorities to small charities and businesses. If you run payroll, you can partner with us.

Quite the opposite. Borrowing is already a normal part of life for most employees — whether through mortgages, credit cards, or car finance. A salary deduction scheme ensures that, if staff do need to borrow, they can do so affordably and responsibly. At the same time, the scheme strongly promotes saving, which many employees find more valuable.

Commercial salary finance companies such as Neyber and Salary Finance operate on a for-profit basis and rely heavily on lending revenue. Some have exited the market when growth expectations were not met. In contrast, credit unions exist solely for their members, are community-owned, and have long track records of running salary deduction schemes responsibly. For employees, this means a more sustainable, trusted, and ethical option.

Credit unions are fully regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). Employee savings are protected under the Financial Services Compensation Scheme (FSCS), which guarantees deposits up to £85,000 per member. This is the same protection banks and building societies offer.